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JonesCliemicAL Inc. <br />BID COVED LETTER <br />Deal- Customer, <br />JCI is certainly aware of the significant increases in the cost of chlorine, caustic soda, and bleach that have <br />been levied upon customers due to the ongoing global disruption in raw material supply. Customer <br />concerns are fully understood. It is particularly important that our customers, and those requesting <br />product pricing, understand that these price increases are "pass-throughs" of the cost amounts the "ECU" <br />(chlorine and caustic soda) Producers have raised JCI. Beginning in Q2 of 2021, the ECU Producers have <br />continued to raise the cost of the above products every quarter. They are not providing firm pricing, and <br />will not negotiate. The information JCI has been provided is these increases will continue throughout <br />2023 & 2024. <br />In addition to these increases, the Producers have also declared Force Majeure, and have placed product <br />on allocation and order control. Regardless, JCI is confident all customers will receive the products they <br />require, especially for Water Treatment Facilities. <br />JCI must emphasize that the ECU Producers have total exclusive control of the costs of raw material <br />chlorine and caustic soda (bleach), and of the allocated amounts delivered to JCI. The other significant <br />increases in costs of business JCI continues to incur, including packaging chlorine in containers, <br />manufacturing bleach, transportation, wages and benefits, insurance, etc. have not been associated with <br />the quarterly price increases. <br />It remains JCI's hope that as in the past 93 years of business, our customers will trust JCI to do our level <br />best to provide products and services to all our customers. <br />Sincerely, <br />JCI Jones Chemicals, Inc. <br />Corporate Offices • 1765 Ringling Blvd. • Sarasota, Florida 34236 • telephone: 941.330.1537 • facsimile: 941.330.9657 . 800.477.1078 <br />Branch Locations • Warwick, NY • Caledonia, NY • Barberton, OH • Riverview, MI . Merrimack, NH . Charlotte, NC <br />Jacksonville, FL • Beech Grove, IN • Milford, VA • Tacoma, WA • Torrance, CA <br />www.jcichemicals.com <br />